Tensions are mounting between the Federal Government and state governors, as well as the private sector, over a proposed increase in the minimum wage. The Federal Government is considering raising the minimum wage to N65,000, but governors and private sector representatives are resisting, arguing that anything above N57,000 is unsustainable, the Punch reported......Read The Full Article>>.....Read The Full Article>>
Ongoing Negotiations
Negotiations for a new minimum wage are ongoing, with no consensus reached. The Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC) have rejected the Federal Government’s offer of N60,000, maintaining their demand for N494,000, down from an initial N497,000.
A member of the Tripartite Committee revealed that while the Federal Government and the private sector initially proposed N60,000, the labour unions remain firm in their demands. The current minimum wage of N30,000, established in 2019, is deemed inadequate by the unions.
Labour Union’s Stance
NLC President Joe Ajaero criticized the government’s proposals as insufficient, highlighting the severe economic challenges faced by workers. The unions recently initiated a nationwide strike, which disrupted economic activities, to protest the government’s delay in approving a new minimum wage and reversing the hike in electricity tariffs.
Federal Government’s Commitment
Following a meeting with labour leaders, the Federal Government, represented by Ministers Mohammed Idris and Nkeiruka Onyejeocha, reiterated President Bola Tinubu’s commitment to establishing a minimum wage higher than N60,000. The Tripartite Committee is expected to continue negotiations to finalize an agreeable wage.
Governors’ Opposition
State governors argue that a minimum wage above N57,000 would strain their budgets, leaving little for developmental projects. A southern governor, speaking anonymously, expressed concerns about the financial burden of paying higher wages to a small fraction of the population.
The organized private sector also voiced frustration, feeling excluded from proper consultations. Despite this, a member of the Federal Government negotiation team confirmed their readiness to meet labour’s demands, with a possible offer of up to N65,000.
State Financial Constraints
Documents from the Nigeria Governors’ Forum indicate that many states are financially constrained and may struggle to afford the proposed minimum wage. For instance, Abia, Ekiti, and Gombe states would face significant budget shortfalls after covering their recurrent expenditures.
